Are there any grounds for setting aside a securities arbitration award?

Yes, there are grounds for setting aside a securities arbitration award in California. Such grounds are provided in the California Code of Civil Procedure Section 1286.2, which states that an “award of securities arbitration shall be subject to vacatur, modification, or correction upon application by a party affected by the award who has agreed to arbitrate, or upon application of a third party beneficiary of the agreement to arbitrate, if the award was procured by corruption, fraud, or other undue means; or if the arbitrators exceeded their powers; or the arbitrators refused to postpone the hearing upon sufficient cause being shown therefor; or if the arbitrators refused to hear evidence material to the controversy; or if there was no substantial evidence to support the award.” If any of these conditions apply, then an individual may be eligible to apply to the court for a setting aside of the award. In such a situation, the applicant must file a petition in the superior court of the county in which the arbitration was conducted or in the superior court of the county in which the agreement to arbitrate was made. Generally, the court will consider the application to the court for a setting aside of the award within 30 days after the petition was filed. The court will decide whether the award should be upheld or set aside, taking into account the grounds stated in the California Code of Civil Procedure Section 1286.2. If the court determines that setting aside the award is necessary, the award will be vacated and the parties can proceed to litigation or arbitration with a different set of arbitrators.

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